KUALA LUMPUR: Solar Management (Seremban) Sdn Bhd’s (SMS) proposed RM260mil Asean Green SRI Sukuk has been accorded a Tier-1 environmental benefit (Tier-1 EB) rating by RAM Sustainability.
In a statement on Thursday, it said the proposed green sukuk also carries credit ratings assigned by RAM Rating Services.
Funds from the proposed green sukuk will be used to refinance SMS’s existing financing facilities, and to partially repay shareholders’ advances used to build its 50 MWac large-scale photovoltaic solar farm in Rembau, Negeri Sembilan.
“The Tier-1 EB rating assigned to the proposed green sukuk recognises the clean renewable energy generated by the plant, ” it said.
RAM Sustainability said the solar plant started operation on Jan 30,2019 and it is expected to generate 75.7 GWh of electricity per year.
The proposed green sukuk, in alignment with United Nations’ Sustainable Development Goals, will yield measurable positive environmental effects.
RAM Sustainability’s external review on SMS’s Asean Green SRI Sukuk Framework concludes that it provides clarity on the utilisation of proceeds, project evaluation and selection, management of proceeds and reporting commitments.
The framework is consistent with the eligibility requirements of Securities Commission’s sustainable and responsible investment Sukuk framework, the Asean Capital Markets Forum’s Asean Green Bond Standards and the International Capital Markets Association’s Green Bond Principles.